KUALA LUMPUR – Malaysia Marine and Heavy Engineering Holdings Bhd’s (MMHE) unit has secured a RM1bil contract from Petronas Carigali Sdn Bhd to undertake a project for the Bokor phase three re-development.

It said on Monday the contract involved the engineering, procurement, construction, installation and commissioning (EPCIC) of the central processing platform (CPP) for the Bokor Phase 3.

“The first steel cut is expected to commence in Q3, 2018 and the project is scheduled to be completed in mid Q2, 2020. Upon completion, the new CPP will be installed at Bokor field located in Baram Delta, Offshore Sarawak, in a water depth of 70 metres,” it said.

MMHE said this project was awarded after going through competitive bidding process.

“Hence, the award of this project is a reflection of MMHE’s improved competitiveness, thanks to a number of implemented cost cutting strategies, efficiency initiatives, combined with strong management focus on the heavy engineering business.

“The award is expected to contribute positively towards MMHE group’s future earnings,” it said.

MMHE posted net losses of RM134.30mil in the financial year ended Dec 31, 2016 compared with earnings of RM43.88mil a year ago. The losses in FY16 was mainly due to the losses in the fourth quarter at RM119.67mil.